Country Analysis Note

Ghana's energy sector has expanded considerably after the discovery of the Jubilee oil field in 2007. The field came online in 2010, and production in Ghana has since increased from 7,000 barrels per day (bbl/d) in 2009 to 99,000 bbl/d in 2013. Tullow Oil, the operator of the Jubilee field, is also developing the offshore Tweneboa, Enyenra, and Ntomm (TEN) project. The TEN project is expected to come online in mid-2016 and eventually reach a peak output of 80,000 bbl/d of crude oil and 50 million cubic feet per day (MMcf/d) of natural gas.

Ghana has one oil refinery, the Tema refinery with a design capacity of 45,000 bbl/d, according to the Oil & Gas Journal. Operations at the refinery have been repeatedly halted over the past few years because of old equipment and the lack of funds to purchase crude oil for processing. Ghana hopes to recuperate operations at the Tema refinery and has announced intentions to sign a joint venture deal with PetroSaudi International, although it’s unclear if this will materialize.

Ghana plans to start commercializing the natural gas that is associated with oil production at the Jubilee field, which has the potential to produce 150 MMcf/d of natural gas. The gas commercialization project, which is mostly being financed by the Chinese Development Bank, entails building the Atuabo gas processing facility and an offshore pipeline that will transport gas from the Jubilee field to Atuabo. The natural gas will be used for power generation and possibly fertilizer production in the future. The project also includes a natural gas liquids exporting system. The project has run years behind schedule because of payment delays to contractors, equipment lost at sea, and a labor strike. It is expected to come online in late 2014.

Ghana is also planning to expand its natural gas production with the start of the TEN associated gas project and ENI’s Sankofa and Gye Nyame non-associated gas fields.

Ghana imported 22 Bcf of dry natural gas in 2012. Ghana imports natural gas via the West African Gas Pipeline (WAGP), which runs east to west from Nigeria to Ghana. WAGP was shut down from August 2012 to July 2013 for repairs following damage to the Togolese section of the pipeline. Gas flows through the pipeline have decreased since 2011 and remain unreliable, forcing Ghana to use heavy oil to supply its dual-fuelled power plants.

Ghana’s energy ministry is considering plans to build a regasification terminal to import liquefied natural gas (LNG) in case imports from WAGP and domestic gas production is not enough to meet power generation demand in the medium to long term. According to Ecobank, Ghana will need more than 800 MMcf/d of natural gas by 2017 for power generation and reinjection into wells to enhance oil production.

Ghana has an installed electricity capacity of almost 2.3 megawatts, as of the end of 2012, according to Ghana’s national energy statistics. Ghana generated 12 billion kilowatthours (kWh) of power in 2012, of which 67% was from hydroelectricity and the remainder from fossil-fuel generation. Ghana is a net exporter of electricity, exporting almost 0.7 billion kWh and importing more than 0.1 billion kWh in 2012. Ghana must expand its installed electricity capacity and distribution system to provide electricity to almost 30% of its population that does not have access to electricity, according to the latest World Bank data. Many Ghanaians, particularly in rural areas, rely on traditional biomass and waste, particularly firewood, for household cooking and heating. Firewood accounts for slightly more than 40% of Ghana’s total primary energy consumption, according to Ghana’s national energy statistics.